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Location Determinants Of Fdi: A Literature Review

Author

Listed:
  • Susana Assunção

    (Faculdade de Economia, Universidade do Porto)

  • Rosa Forte

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Aurora A. C. Teixeira

    (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF)

Abstract

The development of economic activity and the rise in foreign direct investment (FDI) in recent decades has prompted a great deal of research into the phenomenon of multinational companies. A vast amount of empirical literature on FDI catalogues a long list of determinants that try to explain direct investment by multinational companies in a particular location, but it is noticeable that the results are not always consensual. This article provides a review of the theoretical approaches to and empirical studies on FDI in an attempt to single out the most robust factors for explaining the geographic distribution of FDI flows worldwide. It also suggests paths for future research in this area.

Suggested Citation

  • Susana Assunção & Rosa Forte & Aurora A. C. Teixeira, 2011. "Location Determinants Of Fdi: A Literature Review," FEP Working Papers 433, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:433
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    More about this item

    Keywords

    FDI; determinants of FDI; literature review;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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